Club Sustainability Fund Capital Fund - Season 2018/19

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1 Club Sustainability Fund Capital Fund - Season 2018/19 Guidance Notes

2 Executive Summary As part of its commitment to invest significantly in helping member clubs become more sustainable, Scottish Rugby has established a Club Sustainability Fund (CSF) for Capital projects. The Capital strand of the CSF may be available to clubs with a successful track record of working/investing in their community to increase the quantity and quality of rugby participation amongst boys, girls, men and women. Such clubs may apply for funding to upgrade their facilities and improve the quality, capacity and longevity of rugby participation e.g. new/improved pitches, floodlights for training/playing, or upgraded changing accommodation. The Capital strand of the CSF is for capital expenditure only. Scottish Rugby define capital expenditure as expenditure on the purchase, upgrade or construction of an asset. This includes any costs directly incurred in the process such as: Architect fees, Quantity Surveyor and Engineers fees and Solicitor s fees in respect of planning, building warrant asset purchases or leases. Clubs can apply for up to 50,000 through the Capital strand of the CSF with larger awards available at Scottish Rugby s discretion if the club can demonstrate an exceptional impact on rugby development in their local community. Clubs must be able to demonstrate a minimum commitment of 20% of the total project cost with a maximum of 10% of this from in-kind support. Capital projects that are already underway are not eligible for funding. Applicants must take time to read over this CSF Capital strand guidance document and related Application Form before deciding to submit an application. Applicants must also contact their Scottish Rugby Regional Manager for guidance prior to making an application. Projects which include facility improvements designed to improve accessibility for people with a disability e.g. accessible ramps, lifts, toilets may be eligible for an additional funding contribution from Hearts and Balls, one of Scottish Rugby s charitable partners. Scottish Rugby will work with Hearts and Balls to assess applications accordingly and communicate any awards. 2

3 What kind of project is eligible to apply for funding? The following examples illustrate the types of projects which are eligible for funding, however this list is not exhaustive. Clubs must discuss their application with their Regional Manager in order to ensure their project fits with the CSF s aims and eligibility criteria. Eligible project types The provision of new playing or training facilities The provision of new changing accommodation Extension or upgrading of existing playing or training facilities Extension or upgrading of existing changing accommodation Meeting rooms with a sport related use Floodlighting to training facilities (including natural grass training areas) Projects that contain elements of social areas, storage facilities for playing equipment, administration spaces and spectator areas will only be considered for funding if they are part of a bigger project encompassing changing and playing/training facilities. What kind of projects do Scottish Rugby prioritise? All applications will be considered by Scottish Rugby on merit based on the criteria set out in this document together with any other relevant criteria that Scottish Rugby may reasonably apply, but priority will be given to those which can demonstrate the greatest need and impact in the context of rugby development. Some examples of priority projects Facilities which increase opportunities for, or improve the quality of rugby training and playing. Projects that increase capacity for youth participation and in particular women and girls sections. Projects which clearly demonstrate the community sport hub philosophy, encompassing multi-activity/club use and promoting integrated community planning. Upgrading existing or new synthetic or grass pitches. Upgrade existing or new changing accommodation at existing or new training or match pitches. Permanent or portable floodlighting which extends usage of training pitches. 3

4 The following types of projects are not eligible for CSF Capital strand funding: Projects with a value less than 10,000 including VAT (clubs should apply for such funding through the CSF FastTrack or the Big Lottery Fund-Awards for All programme) General repairs, renewals, replacement and maintenance Purchases of mini buses or vans Projects solely for bars, dining rooms, dedicated social areas, equipmet equipment storage, administration rooms or spectator accommodation Bedroom/residential accommodation Personal equipment General sports equipment not having a life expectancy of more than 7 years Buildings with a life expectancy of less than 20 years Works undertaken solely to comply with the requirements of the duty to make adjustments under the Equality Act Please note that Scottish Rugby may be able to provide additional support for projects that improve accessibility through our charity partner Hearts and Balls. Feasibility studies and design competitions Speculative purchase of land and/or facilities for utilisation/development in the longterm Purchases of land and/or facilities as a means of saving on payment of rent Any projects which, in the reasonable opinion of Scottish Rugby, have been started prior to an application being made or a funding approval decision being taken. Letting of a construction contract constitutes a project start. Engaging design consultants does not constitute a project start. Funding will not be provided retrospectively. What requirements will a Capital project have to meet? Clubs must demonstrate all of the following in an application: A clear need and demand for what is proposed. Their commitment to developing rugby in their local community by having a track record of running several adult and youth teams and be able to demonstrate strong links to local schools. The positive impact the project will have on the club and local rugby community e.g. increase in participation, new section etc. The financial justification for the requested level of funding. The operational viability of the project for the period of the award. Maintenance and eventual replacement must be planned and funded by the applicant, taking account of realistic income projections. That the facility will be fit for purpose in terms of location; scale and content; design; accessibility; management; and environmental impact. That with funding from Scottish Rugby the applicant has the finance or will be capable of raising the balance of finance to start the project within 12 months of the date of the award. That the project can be completed within a stated timescale. That links are/will be established with the sports programmes, strategies and/or initiatives operated by the clubs local authority or Active Schools network. 4

5 Who is eligible to apply for funding? Eligibility includes: Voluntary rugby clubs A rugby club can apply on behalf of a public body such as local authorities where the public body owns and operates the rugby club facility and a long term agreement is in place. [Provided that: The organisation s governing documents clearly indicate a primary purpose of providing rugby playing and training opportunities. Where membership of the applicant organisation is required, membership is open to all sections of the community & applicants constitution incorporates an appropriate Open to all clause Example: Membership is open to all and no application for membership will be refused on other than reasonable grounds. There will be no discrimination on grounds of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex; sexual orientation, political or other opinion. The organisation does not distribute profits to the proprietors, directors and/or shareholders but re-invests all surpluses in the project or facility. For club projects, the applicant s constitution must incorporate an appropriate Dissolution clause. Example: If, upon the winding up or dissolution of the club there remains after the satisfaction of all the club s debts and liabilities any property whatsoever, the same shall be given or transferred to some other organisation or organisations having objects (that is, aims and activities) similar to the objects of the club, such organisation or organisations to be determined by the members of the club by resolution passed at a General meeting at or before the time of the dissolution, and in so far as effect cannot be given to such provision then to some charitable objects.] 5

6 Application process Clubs can ordinarily apply for up to 50,000 of funding from the CSF capital strand, with larger awards available at Scottish Rugby s discretion. In any event, please note that applications are primarily for projects with a total cost of under 200,000 as projects in excess of this amount, by their nature, are more complex with longer and more detailed planning processes. If your rugby club is considering a project with a total cost of over 200,000 there is potential funding available. In this instance please contact your Scottish Rugby Regional Manager as early as possible in the planning process to discuss and get their support. Your Regional Manager will also provide the link to the relevant sportscotland contact. Assessment process Applications must be received by 31 January The application process will normally take just over two months to the end of March Scottish Rugby aims to turn around decisions on applications within the timescales noted above, however this is entirely dependent on applicants providing the information needed to fully consider the application. On occasion, further investigation may be required which will require more time. All applications will be objectively assessed and ranked by Scottish Rugby against the following six categories: Rugby Development demand and positive impact, existing and proposed number of players and teams etc. Planning planning permission, location, appropriateness of facility etc Finance capital and operational viability, value for money etc Design whether the project is fit for purpose Management Operational management and usage, maintenance and replacement etc Legal security of tenure, constitution etc What are the potential outcomes for my application: Approve an award, either in full, part or conditionally Defer taking a decision until further information is provided by the applicant Make no award If there is a high volume of applications only those applications ranked as having the highest priority will receive an award. All awards may be subject to additional terms and conditions imposed at the discretion of Scottish Rugby. The final amount of any award is at the discretion of Scottish Rugby and may be less than the amount requested. Payment of Awards Payment of successful awards will be made on evidence of expenditure or contractor invoice in a staged basis relevant to the award offer. 6

7 What information will I need to submit alongside my application form? Governing documents Memorandum and Articles of Association/ Constitution Minutes adopting the organisation s governing documents List of names & addresses of office bearers Dimensioned design drawings Photos of existing site Site plan or location plan Planning Permission in Principle or Full Planning Permission & stamped approved drawings Evidence of Security of tenure of project site Owned sites require copy of title deed documentation and solicitor s letter confirming ownership Leased sites require copy of fully-signed lease, rental or access agreement Quotation or estimates Outline specification of works Latest & previous 2 years annual accounts Current Bank statements Details on how this project fits into your club plans and priorities. Larger projects will require a business plan Management or access agreements Child protection policy 7

8 Funding How much funding can I apply for? All applicants with a total project value between 10,000 and 200,000 (inc. VAT) are eligible to apply for ordinarily up to 50,000. Awards of over 50,000 will be considered if the project is exceptional and can demonstrate a considerable increase in rugby participation in that local community. How much of an applicant contribution is required? Projects require a minimum applicant contribution of 20%* Scottish Rugby expect applicants to meet at least 20% of the eligible project costs from their own resources, which may include bank borrowing and members loans. The 20% can be made up from up to 10% of in kind contribution e.g. club members providing labour or relevant skilled services free of charge, donation of materials or equipment etc. *Areas of deprivation The Scottish Index of Multiple Deprivation (SIMD) identifies small area concentrations of multiple deprivation across all of Scotland. An applicant s minimum contribution from those within these areas is reduced to 10% of the eligible project cost. In order to qualify for the reduced applicant contribution of 10% an applicant must be able to demonstrate that at least 70% of the members and/or users are residents of the deprived area. This rule will also cover applications for facilities that are geographically out with the boundary of a priority area but are within ten minutes walking distance of the area it serves/will serve. 8

9 Additional considerations Value Added Tax If the club is not registered for VAT or is not in a position to have the project zero-rated for VAT purposes (as is sometimes the case for charities approved by HMRC) it is essential that the VAT burden is included in the project costs. Scottish Rugby recommends that each club consults with their local VAT office on the scope to obtain exemption or partial exemption from VAT for the relevant project. Contracts / appointments For projects costing less than 20,000 (excluding VAT and professional fees) prices must be the result of competition with a minimum of three tenders/quotations having been sought. For projects costing more than 20,000 (excluding VAT and professional fees) it is recommended that each club carry out the work using a suitable version of a Standard Form of Building contract. They will also need to be satisfied, that the contract price is obtained as the result of competitive tendering in accordance with industry contract tender. Valuation of property/land Any land being purchased as part of the project or land gifted to the applicant (where the cost of the land is to be classed as an in-kind contribution) will, where eligible, be subject to a District Valuer (DV) valuation. The latter s decision will be final. The cost of the fees for the DV service can be considered part of the eligible project cost. Should an applicant decide not to progress an application, Scottish Rugby and sportscotland reserve the right to reclaim the full cost of the DV s fee. 9

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